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Paycheck Protection Program
12 Months Ended
Dec. 31, 2022
Other Liabilities Disclosure [Abstract]  
Paycheck Protection Program

Note 12 – Paycheck Protection Program

 

On May 5, 2021, and May 7, 2020, the Company applied for and received loans for $190,100 in each year in connection with the Paycheck Protection Program (“PPP”) pursuant to the CARES Act that was signed into law on March 27, 2020.

 

The loans had terms of 5 years, were unsecured and were guaranteed by the Small Business Administration (“SBA”). The loans bore interest at one percent per annum. Loan payments were to be deferred for borrowers who apply for loan forgiveness until the SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower did not apply for loan forgiveness, payments were to be deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between 8 and 24 weeks). 

 

Some or all of the loans could be forgiven if at least 75% of the loans’ proceeds were used by the Company to cover payroll costs, including benefits, and if the Company maintained its employment and compensation within certain parameters during the period following the loans’ origination date and complied with other relevant conditions.

 

The Company elected to account for the PPP loans as an in-substance government grants by applying the guidance in International Accounting Standards 20 by analogy based on the assessment that it is probable that it will meet both (a) the eligibility criteria for a PPP loan, and (b) the loan forgiveness criteria for all or substantially all of the PPP loan. Under this guidance, the Company recorded the loans’ proceeds in other income in the consolidated statement of operations and comprehensive loss for the years in which the Company received a PPP Loan. 

 

As of December 31, 2022, both of the PPP Loans referenced above were forgiven.